Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in the Caribbean region, Curaçao is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Curaçao, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Curaçao?
- Promising Location
Located in the Caribbean region, Curaçao serves as an ideal base for businesses targeting both North and Latin American markets. Its proximity to these regions, combined with a well-developed telecommunications infrastructure, positions Curaçao as a strategic hub for international business operations.
- Favorable Tax Regime
Curaçao offers competitive corporate tax rates: 15% on profits up to 500,000 ANG (~€254,207) and 22% for amounts exceeding this threshold. Companies operating in the Special Economic Zone (E-zone) also benefit from the 15% rate, while specific activities enjoy a reduced rate of just 3%. Certain private and public companies meeting specific conditions can even qualify for tax exemptions, and the absence of VAT simplifies transactions with international clients.
- Flexible Corporate Legislation
Curaçao’s legal framework allows the establishment of limited liability companies without requiring a minimum share capital. This makes the registration process straightforward and reduces financial barriers for new enterprises. Additionally, the use of nominee services is permitted, providing business owners with enhanced privacy.
- Simple Registration Procedure
Registering a company in Curaçao is relatively straightforward and can be completed remotely. This enables non-resident investors to establish and manage their businesses without the need for a physical presence on the island, saving both time and resources.
- Developed Financial Services Infrastructure
Curaçao boasts a highly developed financial services sector, offering a wide range of professional services, including banking, accounting, and legal support. These resources facilitate seamless company formation and operations, ensuring businesses have access to essential support.
How to register a company in Curaçao and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Verification and reservation of the company name;
- Facilitating the notarial process for the company’s official registration;
- Preparation of registration forms;
- Submission of documents for registration to the Curacao Chamber of Commerce;
- Opening a bank account.
Requirements for registering a company in Curaçao on the example of a Private Limited Liability Company / Besloten Vennootschap (BV):
- Shareholders: the company is required to have minimum 1 shareholder. There are no residency requirements. It can be an individual or legal entity.
- Director: it is mandatory to have at least 1 local director.
- Company secretary: no requirement.
- Minimum share capital: there is no minimum share capital requirement.
- Legal address: the company must have a registered office in Curaçao.
- Liability: the liability of the shareholders is limited only to the amount they have invested in the company.
- Accounting: the company must adhere to generally accepted accounting standards such as IFRS or Dutch GAAP, although no legal obligation to adhere to any particular standard exists.
What do you have to know about taxes when registering a company in Curaçao?
Corporate income tax (CIT):
Different rates apply:
- 22% – if there is an excess of ANG 500,000 (~ €254,207).
- 15% – on the first ANG 500,000 taxable profits or operate in the economic zone (E-zone).
- 0% – according to some conditions, private limited companies (BV) and public limited companies (NV) can be exempted.
The rate for businesses that are classified as low-tax activities is 3%.These low-tax activities are:
- Construction, repair and maintenance of ships and aircraft
- Support services
- Storage and logistics processing
- Investment fund services
The rate for low-tax activities does not apply to notaries, lawyers, accountants, tax consultants and management.
Personal income tax (PIT):
The following are the applicable tax rates for each bracket:
- For income up to ANG 34,889 (~ €17,709) – the tax rate is 9.75% and no tax is levied on the first ANG 34,889.
- For income between ANG 34,889 and ANG 46,519 (~ €23,613) – the tax rate of 15% applies to this portion of income, with a fixed amount of ANG 3,402 (~ €1,730) in tax.
- For income between ANG 46,519 and ANG 69,779 (~ €35,486) – the rate of 23% is applied, and the tax amount for this bracket is ANG 5,146 (~ €2,617).
- For income between ANG 69,779 and ANG 98,853 (~ €50,212) – the tax rate rises to 30%, with ANG 10,496 (~ €5,331) payable in tax for this range.
- For income between ANG 98,853 and ANG 145,372 (~ €73,842) – the tax rate increases to 37.5%, resulting in a tax amount of ANG 19,218 (~ €9,762).
- For income above ANG 145,372 – the highest tax rate of 46.5% is applied, with ANG 36,663 (~ €18,624) in taxes due for this range.
Value-added tax (VAT):
- There is no VAT in Curaçao.
- There is no VAT registration threshold for foreign providers.
- Sales tax is 6% with enhanced rates of 7% and 9%.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Curaçao. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Curaçao, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Curaçao and pave the way for your business success!
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
